The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-23
A WRONGFUL USE OF FUNDS
How Democratic State Officers Violated
the Law in Paying Out Money.
The State Auditor Discovers that SLY, 14349
Was Illegally Paid Ont of the Funds Be-
longing to the Present Fiscal Year.

From recent discoveries of shortcomings in
Democratic financial management the pre-
sumption is warranted that if that party had con-
tinued its control of the State funds there would
have been destruction of the State credit before
long. It turned over to the Republicans at the
beginning of this year embarrassed general
fund in which there is not now dollar to pay
current demands. Il became necessary in April,
barely two months after the Democrats had re-
tired from the Offices of the Auditor and Treas
urer of State, to borrow $40. 900 for interest.
Had the interest money the non
negotiable school fund bonds been
applied to its proper purpose this
large loan could have been evoided, but last year
especially the Democrats were in desperate
straits to make their record good. 1t was life or
death for the party. and to escape the latter the
State officials particularly the Auditor and
Treasurer of State. went to extremes to show
balance in the general fund. The means pur-
sued in direct violation of the statute, which
says. 1.-THE Auditor Of State shall at time,
draw a warrant upon the Treasurer Of State
less there be money in the treasury belonging to
the fund upon which the same is drawn to pay
the same, and in conformity to appropriations
made By law and money actually in the
treasury subject to the payment of the same"
When the Republicans went out of Office they
left a balance in the general fund Of nearly
$500, 900. subject to current checking. In the
summer and fall of 1886 there not q dollar
in that fund belonging to it legitimately, with
which to meet current indebtedness Warrant aft
er warrant was presented during this period and
instead of stamping such mot paid for want of
funds" the scheme concocted to school
money. This not only reduced the balance in
money that should have been paid over to the
school revenue, but deferred the payment of in
terest on the non-negotiable school fund bonds.
It is this that has led to the present
exhaustion of the general fund
and to it is partly attributable the necessity for
the loan of $34O. 600 with which to pay interest.
The Democrats had not only wiped out the gen
eral fund balance they received in 1883. but had
increased the State debt from 1911 ,S25. IL to
81 161, 825 II Under the cover of this state
ment lay details of reprehensble practices
which easily explain why the State has not
dollar to pay warrants issued against the general
fund AT the beginning of the last fiscal year
under Democratic management. Nov. l.
1885, the State had only $54, 700. Is in
the general fund, against the balance of $48l,-
Coz. 90 the Republicans showed at the beginning
of their last fiscal year in 1882. During the year
ending Oct. 81. 1886 receipts from all
81. s62. 155 40. aud the disburse-
ments were s., 877, 80, leaving alleged bal
ance at the beginning of the present year of
only $}9, 800 II. The annual report of the Demo.
cratic Auditor of State for the year ending Oct.
81, 1885, shows these figures, and it also
makes an exhibit that the semi annual interest
on non negotiable school fund bonds required to
be paid to the school revenue for tuition fund,
or April 10 and Oct. 10 of each year, amount
ing to 1924. 286 80. was not paid until Ang- 81
and Dec. 81, 1886
In order TO meet the demands exhausted
general fund warrants were drawn on the second
half of this interest money. $li7, lab 40, and the
payment OF interest that should have been made
in October was wrongfully carried to the
present fiscal year. when the interest paid
Dec. 81, last. When the statement of dis
bursements is made up at the end of the year.
it will therefore show, through this Democratic
method used to ease the party's credit. that
three payments OF interest, of SLY, 143.49 each
were .aken from the general fund instead of
two amounting 20 1924, 2S6 &c. which are law
fully due this year. Had the interest warrant
81. the law requires. the general fund would
have shown overdraft of ST., 1873 81 and not the
balance, $39, 800. II the Democratic Auditor OF
State represented at the end Of the last fiscal
year. 1t was by illegally throwing this payment
of $l17, 143 10 into the disbursements
for the fiscal year ending Oct. 81. 1887. that
the general fund reduced that amount,
hence the present EN- barrassment. The Demo
Gratis in this fund leave money to pay
rants issued against it, they, without law
authorize it, deferred paying the October inter
est the non-negotiable school fund boEds
until Der, and used the money to pay
rent warrants. thus causing a general fund def
ict at the beginning Of the present fiscal year
of $77, 753. 81 instead Of balance wropgfuliy
represented